Income Tax rules changes in narendra modi govt budget: After the Narendra Modi government comes in the third term, the second budget is going to be presented on 1 February 2025, on which the common man, investors and tax payers, from farmers to industry and market are eye. The NDA government has been formed in Narendra Modi’s leadership at the Center in June 2024, although the BJP’s performance is not like 2 times. Therefore, there may be some folk announs in the general budget 2025 (Union Budget 2025). It is also believed that giving a big relief to the middle class, the government can give relief on tax in this budget. Currently, on 1 February 2025, Finance Minister Nirmala Sitharaman will present her 7th full budget. It is known that between 2014 and 2024, when the tax payers benefited in the last 11 budgets of the Modi government, when the burden on the pocket increased.
Budegt 2024
In the budget 2024, it has announced to provide relief to taxpayers who bought their property before 23 July 2024. Such home owners will also be able to calculate their long term capital gains tax under the old tax scheme, in which they will have to pay 20 % LTCG tax with indexation benefit. But if they want, they can also pay 12.5 percent LTCG tax without indexation benefit under the new scheme.
At the same time, LTCG was reduced to 12.5 percent on earnings of more than Rs 1.25 lakh annually from equity mutual funds. Whereas in the budget announcement, the Finance Minister had increased the standard deduction to the salary class from 50 thousand rupees to 75 thousand rupees in the new tax regime.
Budegt 2023
In Budget 2023, under the new tax regimen, the limit of rebate in income tax was increased to Rs 3 lakh. At the same time, the number of income tax slab was reduced to 5. In this, 3 to 6 lakh rupees annual income, 5% for income, 10% on income of Rs. 9 lakh, 15% tax on Rs 12 lakh, Rs 12 lakh to Rs 15 lakh 20% and more than Rs 15 lakh There is a provision of 30% tax on income. Income tax rebate has been increased to Rs 7 lakh. The old tax system continues as before.
Budegt 2022
There was no announcement about tax in this budget.
Budegt 2021
In the year 2021, pensioners above 75 years of age in the budget were allowed to file tax returns, provided they are earned from pension and interest from the bank.
Budegt 2020
In the 2020 budget, alternative income tax slab was announced. Both old income tax slab and new optional tax slab were available for tax payers.
Budegt 2019
In 2019, the first interim budget was presented due to the general elections, in which those with less than Rs 5 lakh were announced to pay zero tax. The limit of tax rebate increased from Rs 2500 to Rs 12500. Standard deduction was increased from Rs 40,000 to Rs 50,000. TDS limit on rent was increased from Rs 1.80 lakh to Rs 2.40 lakh. After this, there was no change in the tax slab in the general budget.
Budegt 2018
10 percent tax was levied on long term capital gains of more than Rs 1 lakh from equity. Interest income up to Rs 50,000 from the bank or post office deposit of senior citizens was provided tax exemption, which was earlier Rs 10,000. In lieu of reimbursement of medical expenses, a standard deduction of Rs 40,000 was allowed. For medical expenses for senior citizens, the deduction was increased from 30 thousand rupees to 50 thousand rupees.
Budegt 2017
Tax payers were given a tax rebate of Rs 12,500. For income from 2.5 lakh to Rs 5 lakh, the income tax rate was reduced from 10 to 5 percent. 10 percent surcharge was imposed on people with annual taxable income between 50 lakh and 1 crore.
Budegt 2016
In the budget of 2016, it was announced to increase the tax rebate from 2000 to 5000 rupees for those with income less than 5 lakh. The tax exemption under section 80 GG for those paying home fare was increased from 24,000 to 60,000 rupees. Annual income tax was imposed on a dividend of more than Rs 10 lakh annually.
Budegt 2015
The deduction limit on the health insurance premium was increased from Rs 15,000 to Rs 25,000. For senior citizens, this limit was increased from Rs 20,000 to Rs 30,000. Wealth tax was abolished in the budget. Sukanya Samriddhi Yojana was made tax free. A tax exemption of Rs 50,000 was announced on investment in NPS.
Budegt 2014
In 2014, the first budget of the Modi government was presented in July 2014. The tax exemption limit was increased from 2 lakh to 2.5 lakh rupees. Whereas for senior citizens, this limit was increased from Rs 2.5 lakh to Rs 3 lakh. The tax deduction limit under Section 80 (C) of Income Tax Act was increased from Rs 1.1 lakh to Rs 1.5 lakh.
